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Half of Netflix Users Would Switch to Another SVOD Service

6 Sep, 2012 By: Erik Gruenwedel

Loss of exclusive access to Epix movies to Amazon will affect SVOD pioneer’s user trends

More than 50% of Netflix users would drop the service for an alternative subscription video-on-demand option offered by their pay-TV operator, according to new data from GfK Media during a June survey of more than 1,000 respondents ages 13 to 54.

The New York-based research firm said almost 37% of Netflix subscribers still have a negative view of the brand in the aftermath of last year’s pricing missteps, and 51% would be willing to switch to a similar service if it was offered by their pay-TV service (compared with 45% in 2011).

The lack of brand loyalty is significant considering Netflix no longer has exclusive access to movies from Epix — sharing it now with Amazon Prime Instant Video.

Meanwhile, the average Netflix sub watched more than five (30-minute) television shows and three (90-minute) movies a week totaling more than eight hours of content consumed. The weekly tally was more than double the average time (3.5 hours) consumers spend playing video games.

Overall, the study found that 47% of respondents have used Netflix, and 39% are monthly users — up from 35% in 2011.

“In a short time, Netflix has carved out a powerful role in U.S. media, providing the kind of content control and user-friendly interfaces that consumers demand,” said David Tice, SVP of GfK Media and director of The Home Technology Monitor. “Netflix clearly has built a model worth emulating — but it will have to fight harder to sustain brand loyalty and its position as market leader.”

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